DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS

Transcription

1 SUFFOLK COUNTY HOME CONSORTIUM DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS 2014 PROGRAM GUIDELINES Important: Please retain this copy of the program guidelines after you send in the application as it contains important program information. APPLICATIONS MUST BE SUBMITTED BY OCTOBER 31, GOAL: To help make the American Dream of homeownership a reality for first-time homebuyers in the Suffolk County Consortium of municipalities. 2. GRANT ASSISTANCE: The Suffolk County HOME Consortium down payment assistance funds are essentially zero-interest deferred loans that are forgiven after 5 years. The assistance provided will be up to 14,000 for eligible applicants to assist with the down payment toward the purchase of an owner-occupied, single family residence. This program does not fund closing costs. The applicant will be required to sign a Note & Mortgage which is subordinate to the bank or lending institution that will be providing the primary mortgage. 3. ELIGIBILITY CRITERIA: An applicant must: Be a First-Time Homebuyer. Defined by the U.S. Department of Housing and Urban Development (HUD) as a household that has not owned a home during the three-year period immediately prior to the purchase of a primary residence with HOME funding. This requirement will be waived for U. S. military veterans possessing a DD-214, verifying honorable service. Be a Low to Moderate Household. All applicant households must have a gross annual income not exceeding 80% of the area median income as determined by HUD (see chart that follows). Have tax returns and pay stubs (or other applicable documentation) to prove a minimum annual household income of at least 30,000. Attend mortgage counseling at a HUD certified not-for-profit housing agency and submit proof of attendance (a certificate of completion) with the application. Have adequate financial resources and credit to qualify for a mortgage. Occupy the subject property as a principal residence. Not have entered into a Contract of Sale to purchase a home prior to being issued a Purchaser Certificate by the Suffolk County Community Development Office (SCCDO).

2 INCOME GUIDELINES: The maximum permitted gross annual household income for applicants shall not exceed 80% of the area median annual household income as determined by HUD. Such amounts are set forth below. Household Size Maximum Allowable * Minimum 1 58,850 30, ,250 30, ,650 30, ,100 30, ,800 30, ,550 30, ,250 30,000 8 or more 111,000 30,000 *Please note that the maximum allowable income includes all income such as overtime, bonuses, pensions, social security, 401-K distributions, tips, etc. Your gross income cannot exceed the maximum annual income for your household size. When reviewing your application, the Suffolk County Community Development Office must project the income that will be earned for the upcoming 12-month period. 5. HOMEBUYER CONTRIBUTION: The applicant is required to have a minimum of 3,000 of their own funds in the bank at the time of application. 6. PROPERTY VALUE LIMIT: The maximum appraised value of a single-family residence to be purchased within the Suffolk County Consortium HOME Selection Area cannot exceed 328,000 for existing construction or 388,000 for new construction. 7. TYPES OF ELIGIBLE HOUSING: Pre-existing or newly constructed single family residences located within the Suffolk County Consortium HOME Selection Area must be occupied as a principal residence, including single-family houses, condominiums, cooperative apartments (co-ops) or manufactured homes. 8. Manufactured homes must be placed on real property owned or to be owned by the purchaser. 9. CONSORTIUM AREA: Applicants must purchase a home within the Suffolk County Consortium HOME Selection Area stated below: Town of Brookhaven and the Villages of Bellport, Lake Grove, Patchogue, Port Jefferson and Shoreham Town of East Hampton and the Village of Sag Harbor Town of Huntington entire town Town of Riverhead entire town 2

3 Town of Shelter Island excluding incorporated villages Town of Smithtown and the Village of the Branch Town of Southampton and the incorporated Villages of Sag Harbor, Southampton, Westhampton Beach and West Hampton Dunes Town of Southold excluding incorporated villages *Please note that the Town of Babylon and the Town of Islip do not belong to the Suffolk County HOME Consortium of municipalities. This program cannot fund purchases in these towns. 9. Mortgage Counseling and Homebuyer Education Requirements: Applicants must have adequate financial resources and credit to qualify for a mortgage. In order to help you with the home buying process, it is required that all applicants obtain mortgage counseling from a HUD certified not-for-profit housing agency. Some of these housing agencies are listed below. There may be a fee for counseling services. These organizations have a great deal of knowledge in this field and can advise you on many aspects of purchasing a home and securing a mortgage. Even though it is the responsibility of the applicant to secure a mortgage, some of these housing agencies can refer you to banks that offer first-time homebuyer mortgage products. They can also assist you with clearing up any credit problems you might have. Therefore, you are advised to schedule an appointment as soon as possible. All applicants are required to provide a mortgage counseling certificate with their application as proof that the counseling was completed in-person. A Mortgage Counseling Certificate must be sent in with your application. AGENCY PHONE # Bellport, Hagerman, East Patchogue Alliance 1492 Montauk Highway, Bellport, NY Community Development Corporation of Long Island 2100 Middle Country Road, Suite 300, Centereach, NY Long Island Housing Services 640 Johnson Avenue, Suite 8, Bohemia, New York, Economic Opportunity Council of Suffolk, Inc. 320 Carlton Avenue, 7 th Floor, Central Islip, NY Housing Help, Inc. 92 Broadway, Suite 6, Greenlawn, NY Long Island Housing Partnership 180 Oser Avenue, Suite 800, Hauppauge, NY North Fork Housing Alliance, Inc. 116 South Street, Greenport, NY Exts PURCHASER CERTIFICATE: Only eligible applicants will be issued a Purchaser Certificate by the Suffolk County Community Development Office. All eligible applicants that have been issued a Purchaser Certificate have until January 31, 2015 to submit a fully executed Contract of Sale to the Suffolk County Community Development Office. After entering into a contract to purchase an 3

4 owner occupied, single-family residence, applicants have until April 30, 2015 to secure a mortgage with a recognized lending institution and close on the subject property. However, if the purchase is for new construction, the applicant will have until December 15, 2015 to close on the subject property. Suffolk County reserves the right to nullify and/or void any Purchaser Certificate issued in the 2014 Suffolk County HOME Consortium Down Payment Assistance Program based on funding availability. 11. HOUSING QUALITY STANDARD INSPECTION: Suffolk County requires that the residential property to be purchased must pass a Housing Quality Standards (HQS) Inspection before receiving HOME funds. This inspection is provided by Suffolk County and is solely for the purpose of ensuring that the home is in decent, safe and sanitary condition pursuant to HUD regulations. The inspection will be ordered by the SCCDO upon receiving a mortgage commitment. Without exception, this program will not fund homes that fail the HQS Inspection. Suffolk County is not responsible to any person, party, entity, applicant, buyer, seller, etc., for the loss of any deposit and/or down payment on a home which has not passed the HQS Inspection. This inspection does not take the place of a home inspection ordered by the purchaser. 12. OBTAINING THE GRANT ASSISTANCE: As a condition to obtaining assistance, applicants are required to submit to the Suffolk County Community Development Office the following documents as soon as they are available: Fully executed Pre-Contract Agreement. This agreement will be provided to all eligible applicants at the time a Purchaser Certificate is issued. Fully executed Contract of Sale (copy). Visual Inspection Report from an EPA Certified Lead Based Paint Inspector. This report must be completed by an EPA Certified Lead Based Paint Inspector or submit proof that the house was built after Mortgage Application (copy): also known as a 1003 (ten-oh-three) form. Appraisal of the Subject Property (copy). Mortgage Commitment (copy). In order to receive the assistance, eligible applicants will be required to sign a Suffolk County Payment Voucher and a Note & Mortgage to secure the terms of the grant. Please note those applicants purchasing a co-op will be required to sign a Note & Security Agreement and Suffolk County will file a UCC-1 statement in order to secure the grant assistance. 13. RESTRICTIONS: When searching for a home, the subject property that is to be purchased cannot displace an existing tenant. The house must be vacant, occupied by the owner, or occupied by the purchaser as a tenant. Both the purchaser and seller will be required to sign a PRE- 4

5 CONTRACT AGREEMENT in order to verify that this restriction is not being violated. This document will be sent to you when the Purchaser Certificate is issued. The applicant must not have entered into a Contract of Sale to purchase the subject property prior to being approved for the Suffolk County HOME Consortium Down Payment Assistance Program and issued a Purchaser Certificate from the Community Development Office. All houses constructed prior to 1978 must pass a Visual Inspection for the presence of lead based paint. This report must be completed by an EPA-Certified Lead Based Paint Inspector. Houses built after 1978 are exempt from this requirement and applicants must submit proof of this fact. Private mortgages are not allowed. Mortgages must be through a licensed and recognized lending institution. No Short Sales allowed. No foreclosures Allowed. No Real Estate Owned Properties are allowed. Non-occupying co-borrowers/co-signers/guarantors are not permitted. 100% Financing is Not Permitted. Interest Only Mortgages and Adjustable Rate Mortgages are Not Permitted. No Doc Loans or No Check Loans are Not Allowed. 80/20 Loans are Not Allowed. 15. CLOSING: The funds will be provided to the applicant by Suffolk County at the closing. A representative of the Suffolk County Community Development Office will attend the closing and will provide the check. The Down Payment Assistance is a zero interest deferred payment loan that will be forgiven at the end of the five-year term as long as the house is not sold, transferred or rented out. Recipients will be required to verify that they are still living in the funded property for the five-year term of the Note & Mortgage. 16. ANNUAL RE-CERTIFICATION: All eligible applicants who receive the down payment assistance will be required to live in the subject property as their principal residence for five (5) years. A monitoring affidavit will be mailed annually to the grant recipient in order to verify in writing that the subject property is being maintained and in compliance with the following guidelines: Grant recipients are the current owners of the subject property. The subject property is currently occupied as the grant recipient s primary residence. The subject property is properly insured and maintained in agreement with the terms of the Note and Mortgage or the Note & Security Agreement. No interest in the subject property has been sold, rented or transferred. If the foregoing is accomplished during the required five (5) year affordability period, then the Note & Mortgage will be forgiven and no repayment is required. Upon completion of the five (5) year 5

6 affordability period the homeowner will be issued a Satisfaction of Mortgage from the Suffolk County Community Development Office. Please note that the homeowner will be responsible for all fees associated with filing the Satisfaction of Mortgage at the Suffolk County Clerk s Office. APPLICATION PROCEDURE: Be sure to include all required documentation with your application as stated on the checklist. Incomplete applications will not be considered. Complete applications will be evaluated on a first-come first-served basis. Applications may be returned by mail to: Suffolk County Community Development Office Attention: Down Payment Assistance Program P.O. Box Veterans Highway, H. Lee Dennison Bldg. Hauppauge, N.Y If you want confirmation of delivery, go to the post office and have your application submission sent Certified Mail, Return Receipt Requested as the Suffolk County Community Development Office cannot confirm receipt by phone. Application packages may be dropped off at the H. Lee Dennison Bldg. on Veterans Highway in Hauppauge. They must be in a sealed envelope. There will be a secure drop-off bin at the Security Desk in the lobby. Applicants will be notified BY MAIL ONLY, as soon as a determination of eligibility has been made. The applications can be downloaded from the Suffolk County web site at: unitydevelopment/homeinvestmentpartnershipsprogram.aspx Suffolk County reserves the right to nullify and/or void any Purchaser Certificate issued for the 2014 Suffolk County HOME Consortium Down Payment Assistance Program based on funding availability, as funding is limited. Suffolk County is not responsible to any party for the loss of a down payment or any other damages which may arise as a result of the applicant s failure to adhere to the terms of the 2014 Suffolk County HOME Consortium Down Payment Assistance Program Guidelines, as stated in this document. 6

7 SUFFOLK COUNTY HOME CONSORTIUM DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS 2014 APPLICATION Please be sure to RETAIN THE PROGRAM GUIDELINES after you send in the application as it contains important program information. The deadline for submitting applications is October 31, Failure to provide complete and accurate information will cause immediate disqualification. 1. Applicant Name: Address Mailing Address (if different from above) Home Telephone # Cell Phone # Employed by: Work Telephone # Check here if not employed: Stay-at-home parent Disabled Retired Other ( _) 2. Applicant Name: (does not have to be on mortgage) First M.I. Last Address Street Address Town Zip Mailing Address (if different from above) Home Telephone # Relationship to Applicant 1: Cell Phone # Employed by: Work Telephone # Check here if not employed: Stay-at-home parent Disabled Retired Other ( _) Page 1 of 8

8 SUFFOLK COUNTY HOME CONSORTIUM DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS 2014 APPLICATION 3. Total Number of Members in Household (must agree with Section 10) 4. Are you a U.S. Citizen? Applicant #1: YES Applicant #2: YES NO NO If you answered NO, are you a legal resident alien? Applicant #1: YES Applicant #2: YES NO NO If you answered YES, you are required to provide proof of your legal alien status with this application. 5. Do you presently own a home? Applicant #1: YES Applicant #2: YES NO NO 6. Have you owned a home within the last three (3) years? Applicant #1: YES NO Applicant #2: YES NO If either applicant answered "YES" to question 6, explain the circumstances under which you no longer own a home: Are you are a U.S. military veteran? Applicant #1: YES NO Applicant #2: YES NO If you answered YES, you are asked to provide a DD-214 form, indicating honorable discharge, with this application to exempt you from the first time homebuyer status. 7. Do you own a time share? Applicant #1: YES NO Applicant #2: YES NO 8. Will you occupy the home that you purchase as your principal residence? YES NO 9. List the name of any member of the household who is disabled. Page 2 of 8

9 SUFFOLK COUNTY HOME CONSORTIUM DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS 2014 APPLICATION QUESTIONS 10a and 10b MUST BOTH BE ANSWERED: The following information is being requested for statistical and reporting purposes only, to comply with federal equal opportunity requirements. Your answers will not affect your eligibility for this program. 10a. Ethnicity of Head of Household: Are you Hispanic/Latino? Yes AND 10b. Race of Head of Household: No (11) White (12) Black/African American (13) Asian (14) American Indian or Alaska Native (15) Native Hawaiian or Other Pacific Islander (16) American Indian/Alaskan Native and White (17) Asian and White (18) Black/African American and White (19) Amer. Indian/Alaskan Native and Black/African American (20) Other Multi-Racial (21) Asian/Pacific Islander Page 3 of 8

10 SUFFOLK COUNTY HOME CONSORTIUM DOWN PAYMENT ASSISTANCE PROGRAM FOR FIRST-TIME HOMEBUYERS 2014 APPLICATION 11. List each person who will live with you in the household. Start with yourself and please include custodial children (who live with you at least 50% of the time), spouse, fiancé, life partner, parent, friend, etc. (regardless of relationship) 1 First Name: Last Name Circle one: 2 First Name: Last Name Circle one: 3 First Name: Last Name Circle one: 4 First Name: Last Name Circle one: 5 First Name: Last Name Circle one: 6 First Name: Last Name Circle one: 7 First Name: Last Name Circle one: 8 First Name: Last Name Circle one: Self Relationship to #1 Relationship to #1 Relationship to #1 Relationship to #1 Relationship to #1 Relationship to #1 Relationship to #1 Page 4 of 8

11 SUFFOLK COUNTY DOWN PAYMENT ASSISTANCE PROGRAM APPLICATION 12. CURRENT EMPLOYMENT: List all current employers for each wage earner over 18 years of age listed in section # 11. Include a separate sheet for any other employers. Do not list any past employers. Your Name: Employed by: Gross : Location Address: Job Title: Date Hired: Full Time employee? YES / NO Please circle your choice Your Name: Employed by: Gross : Location Address: Job Title: Date Hired: Full Time employee? YES / NO Please circle your choice Your Name: Employed by: Gross : Location Address: Job Title: Date Hired: Full Time employee? YES / NO Please circle your choice Your Name: Employed by: Gross : Location Address: Job Title: Date Hired: Full Time employee? YES / NO Please circle your choice 13. ANY OTHER SOURCES OF INCOME: List all sources of income other than wages (i.e., social security, disability, unemployment, retirement income, workers comp, investment income, etc.) and state the frequency it is paid (i.e., weekly, monthly, annually, etc.) and provide proof (award letter, annual statement, etc.). Recipients Name Source Amount Frequency Page 5 of 8

12 SUFFOLK COUNTY DOWN PAYMENT ASSISTANCE PROGRAM APPLICATION 14. BANKING INFORMATION: Please provide current information for each bank account held by any adult household members and send copies of the last three months bank/financial statements for each account listed below. Also include any retirement accounts, such as 401-K accounts, IRA s stocks, bonds, money market accounts, certificates of deposits (CD accounts), etc. Applicants must have 3,000 of their own funds at the time of application. Please include separate sheet for any other financial information Name(s) on the Account: Bank Name: Account Number: Current Balance (as of today s date): Check Account Type: Savings Checking Other Name(s) on the Account: Name(s) on the Account: Bank Name: Account Number: Current Balance (as of today s date): Check Account Type: Savings Checking Other Bank Name: Account Number: Current Balance (as of today s date): Check Account Type: Savings Checking Other Name(s) on the Account: Bank Name: Account Number: Current Balance (as of today s date): Check Account Type: Savings Checking Other Page 6 of 8

13 SUFFOLK COUNTY DOWN PAYMENT ASSISTANCE PROGRAM APPLICATION Please read this entire page and then sign below. I hereby authorize the release of financial information by and to the Suffolk County Community Development Office on my behalf in relation to this application for the Suffolk County HOME Consortium Down Payment Assistance Program. This authorization includes the release of any financial information and documentation to the Suffolk County Community Development Office from any lender to which I have applied for a mortgage or from any employer. I understand that providing false or incomplete information will disqualify me from consideration and/or represent a criminal offense in the Suffolk County HOME Consortium Down Payment Assistance Program. If any of the information provided in this application changes prior to closing, it is my responsibility to notify the Suffolk County Community Development Office in writing so that an updated determination can be made regarding my eligibility status. If I have not closed on a house within six (6) months of the date qualified, I understand that I will be required to resubmit current financial information and documentation to determine that I still meet the eligibility requirements of the program. Program eligibility must be maintained from the point of application to the awarding of the grant assistance at the closing. I understand that this is not an offer and that the terms and conditions of the Suffolk County HOME Consortium Down Payment Assistance Program may be changed at any time by the U.S. Department of Housing and Urban Development (HUD) or by the Suffolk County Community Development Office. I further understand that notices by the Suffolk County Community Development Office may be made in such manner as the Suffolk County Community Development Office may determine, including solely by advertisements. I understand and acknowledge that Suffolk County is not responsible to any party for the loss of a down payment or any other damages which may arise as a result of the applicant s failure to adhere to the terms of the Suffolk County HOME Consortium Down Payment Assistance Program, as so stated. Applicant Signature Date Applicant Signature Date WARNING: Section 1011 of Title 18 of the U.S. Code makes it a criminal offense to make willful false statements or misrepresentations to any department or agency as to any manner within its jurisdiction. Page 7 of 8

14 SUFFOLK COUNTY DOWN PAYMENT ASSISTANCE PROGRAM APPLICATION Required Documentation Checklist Use this checklist to be sure your application package is complete. Your application will not be considered complete unless all the following applicable documentation is included. Incomplete applications will not be reviewed for eligibility. The deadline for submitting applications is October 31, Signed and dated 2014 Suffolk County HOME Down Payment Assistance Application. Signed and dated Mortgage Counseling Certificate from a HUD-certified mortgage counseling agency. Two months of current consecutive pay stubs showing year-to-date gross earnings for all household members over 18 years of age. If year-to-date earnings are not included on pay stubs, a letter signed by your employer on company letterhead is required. Letter must state your title/position, annual salary and/or rate of pay, with number of weekly hours worked. Three (3) current consecutive bank/financial statements with all pages for each applicable bank account. Please note that applicant(s) must have a minimum of 3,000 of their own funds at the time of application in order to be eligible for the 2014 Suffolk County HOME Down Payment Assistance Program. Copies of your signed IRS 1040-Federal Tax Returns with all required schedules and W-2 statements for the last three years (2013, 2012 & 2011). If you file electronically, please sign all schedules before sending them. Current school transcripts for household members over the age of 18 receiving some type of income (if applicable). Copies of documentation for Social Security Benefits, Disability, Pension, Unemployment, etc. (if applicable). Separation Agreement or Divorce Decree (if applicable). Proof of legal resident alien status (if applicable). For U.S. military veterans, only to exempt from first-time home buyer status, a DD-214 discharge form verifying honorable discharge. RETURN BY U S POSTAL SERVICE TO: Suffolk County Community Development Office Attn: Down Payment Assistance Program P.O. Box 6100 Hauppauge, NY RETURN BY COURIER SERVICE TO or Drop off at: Suffolk County Community Development Office Attn: Down Payment Assistance Program H. Lee Dennison Building 100 Veterans Memorial Highway Hauppauge, NY Page 8 of 8